10 reasons why relying on Google Analytics for revenue is not a good strategy

Google Analytics (GA) is the most popular cloud analytics platform among businesses. It was originally designed as a tool to capture user behaviour on a website. GA leverages a Javascript file also called a pixel, analytics.js. When this file is added to a website, user activity is sent to GA and then the captured data is rendered to the user via the GA interface. Over the years, Google has added more and more functionality to GA, and as a result, the tool has been gaining popularity beyond the capability that it was originally designed for. To the point that 7 out of 10 marketers we talk to rely on GA data for their performance reporting. 

Google relies on the accurate implementation of Enhanced Ecommerce for funnel and transaction data. With the right tagging plan, Google Tag Manager expertise, and developer support, key events in the customer journey can be captured along with the revenue data as well. Relying on GA data for user behaviour data is generally a good strategy, assuming a good implementation of GA is in place. 

However, when marketers start to rely on Google Analytics for revenue, that’s when things start to get a little hairy.

Reasons not to rely on Google Analytics for Revenue :

Sl No	Issue	Impact
1	You don’t have Enhanced E-commerce setup	Revenue numbers are not getting captured
2	Analytics.js tag doesn’t fire on-page load?	Revenue doesn’t get captured in GAUnderreporting of revenue
3	Users call in or email support to cancel orders	Revenue doesn’t get captured in GAInflated revenue numbers in GA in comparison to actual revenue
4	Users return the orders	Revenue doesn’t get captured in GAInflated revenue numbers in GA in comparison to actual revenue
5	Fraudulent order detected after booking	Inflated revenue numbers in GA in comparison to actual revenue because the order was canceled in the E-commerce system
6	GA is not capturing data from certain browsers or devices	Underreporting of revenue
7	Users are using the incognito mode on their browsers or have turned cookies off	Underreporting of revenue
9	Orders failed to get recorded in the database	Inflated revenue numbers in GA
10	GA is not setup to captured discount and coupon application	Inflated revenue numbers in GA
11	Google cannot exclude revenues from sample or test orders	Inflated revenue numbers in GA

These are not uncommon scenarios. In fact, these are extremely common. After having audited 100s of GA implementations and having done over 70 GA implementations, we have consistently noted that revenue numbers are about 85%-90% of the real revenue numbers. That is why we believe that revenue in GA should not be used for any serious discussions around marketing efficiency or business performance. 

What is the Solution?

Most brands make the mistake of only using Google Analytics primarily because it is free. However, in order to get advanced features, you have to get Google Analytics 360 which will cost roughly $150,000 annually in licensing.  

So, Halo has been made to solve all the above problems effectively. Halo with its intuitive user interface, automated data extracts, a world-class modeling engine, scheduled reports, notification delivery, and a robust visualization layer offers e-commerce businesses a turn-key solution that addresses most of your business needs. 

Sign up for Halo now to get accurate revenue reporting that can be used by every stakeholder in the company.